UBS Doesn't Think Michelle Obama Can Save J.Crew

The
retailer's shares hit all-time low yesterday after UBS said
J.Crew was not immune from the economic downturn. We guess even
an endorsement from the First Lady-elect can't save a store in
this ailing retail climate. (Sorry, White House / Black Market.)

CNN Money: Shares of J. Crew Group Inc. fell to an all-time
low Monday after an analyst said she expects weaker results from
the apparel and accessories retailer, and lowered her estimates
and price target on the stock.

UBS analyst Roxanne Meyer said in a client note Monday that New
York-based J. Crew has proven not to be immune to the weakening
economic environment.

The company has "solid" product execution but there have been
more promotions during the quarter than planned, Meyer said.

"Although we think product is appealing, we believe J. Crew's
heightened exposure to basic 'classic' items and to the New
York-metro area will weigh on sales," Meyer wrote. "Promotional
levels have been high in the third quarter, which we see as
incremental to current guidance."